Crypto Scams In Australia Skyrocket By 190% Over The Past Year

Crypto scams in Australia seem to be on the rise year by year since in 2018 they surged up to 190 percent and scammers were paid up to 700 times. The latest cryptocurrency news shows that crypto enthusiasts had it rough in 2018 with the changing market conditions and the rise of scammers in the country.

The data from the Australian Competition and Consumer Commission (ACCC) shows that the use of crypto scams increased tremendously over the year. The losses reached a sum of $6.1 million versus the $2.1 million reported in 2017. The use of cryptocurrencies and other methods increased the need of anti-scam measures by the financial institutions. Delia Rickard from the ACCC pointed out:

‘’Scammers increasingly ask for money via iTunes cards, Google Play cards, and cryptocurrencies to avoid the anti-scam measures employed by banks and money laundering detection systems.’’

When Bitcoin and other cryptocurrencies recorded their all-time highs in late 2017, crypto scams after the large investments also increased dramatically. The ACCC’s scam reporting platform-Scamwatach, explains that many so-called investors were enticed by the overall crypto hype. However, when investors tried to cash out, the scammers were no longer available and contactable.

Besides investing in crypto scams, fraudsters urge their victims to pay in cryptocurrency when they are investing in other opportunities. This includes forex trading and commodities. This way, Australians lost nearly $2.7 million. The ACCC report shows that 50 percent of the losses occurred while paying in crypto to fraudsters who most of them were men from 25-34 years old. According to the altcoin news, the studies show that globally men are the most likely to perform fraud since they are more crypto-literate.

In about 75 percent of the crypto scams, victims report that they get contacted through the internet, mainly email. The fraudsters also use other methods via social networking sites or forums. Australia has seen a significant increase in the number of scams via cryptocurrencies. However, the amount lost in fiat currency surpasses the one of crypto by a huge percent. The total amount of fiat losses reach up to $489 million while crypto takes up only 1.25 percent of the losses.